24/7 Wall St.’s latest list of brands forecasted to disappear in 2015 includes two internationally renowned Canadian brands.
Vancouver-based yogawear maker Lululemon was included because—like many fashion retailers—the company has found itself in a highly competitive market. Lululemon is currently battling Gap’s move into the yoga pants space as well as increased competition from lower-priced alternative lines.
In 2012, the site had predicted that Blackberry maker Research In Motion would disappear. Now named Blackberry, the company continues to suffer decreasing revenue and is struggling to stay afloat. 24/7 expects the tech company to finally fold next year.
The latest list reflects the fact that mergers and acquisitions are now at unprecedented levels. Some companies on the list may disappear due to weak products and poor sales, while others may disappear due to their desirability. The criteria for the list included risk factors such as declining sales and losses, rising costs that cannot be recouped through higher prices, bankruptcies and withering market shares.
In addition to Lululemon, other trendy retailers made the list, as the sector continues to flounder. Aeropostale’s teen line of branded clothes can’t seem to keep up with low-cost fashion brands like Forever 21 and H&M and may not weather the storm.
The consolidation of the broadband industry could also cause some companies to slip from the radar. Time Warner will likely be sold to Comcast while DirecTV will likely be bought by AT&T, Inc.
Internet-based image publishing service Shutterfly has made a considerable profit selling photos to be used for greeting cards and calendars, but it is now competing with free photo sharing services such as Instagram. The site is currently shopping for a buyer.
Food packaging companies also made the list. Russell Stover may be the third largest chocolate company in America, but third place is still far behind big names like Hershey, the current number one. Russell Stover’s management has recently listed the company on the market. Additionally, Hillshire Brands Co. is due to be sold this year and has already signed an agreement with Tyson Foods, Inc.